NHPC Limited (NHPC) AI Stock Analysis

• Market Cap: ₹734.59B
• Dividend Yield: 2.44%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.29
• Revenue Growth: 15.72%
• EPS Growth: 6.45%
• Country: IN
• Employees: 4,461
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 0.31
• Shares Outstanding: 10,045,034,000
• 10 Day Avg. Volume: 870,126
• 30 Day Avg. Volume: 1,122,519
• PEG Ratio: -1.67
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 7.96
• P/FCF Ratio: -21.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.02
• Revenue Forecast (FY): ₹125.26B

• Rating: 65 Neutral
• Price Target: ₹79.00 ▼(-5.52% Downside)
• Action: Reiterated Date: 09/12/25
• Date: Action: Reiterated 09/12/25

NHPC Limited's overall stock score is driven by strong financial performance, despite challenges in cash flow management and rising leverage. Technical analysis indicates potential bearish momentum, while the valuation suggests the stock may be overvalued. The absence of earnings call and corporate events data limits further insights.

Positive Factors

High gross profit margin

NHPC’s gross profit margin above 90% reflects the low variable costs and efficient operations of hydropower assets. Persistently high gross margins provide a durable earnings buffer, supporting long‑term maintenance funding and competitiveness under tariff contracts over the next several months.

Strong equity base

An equity ratio near 38.6% indicates a sizable capital cushion and government‑linked balance sheet strength. This structural solvency supports project financing, absorbs cyclical shocks, and enhances access to capital for hydro projects over the medium term.

Operating cash conversion

A strong operating cash flow to net income ratio shows NHPC’s core generation business reliably converts earnings into cash. This durable cash generation underpins day‑to‑day operations, maintenance funding and debt servicing capacity despite episodic capital needs.

Negative Factors

Rising leverage

Debt‑to‑equity rising to ~1.05 increases interest costs and reduces financial flexibility for a capital‑intensive utility. Higher leverage raises refinancing and liquidity risk, constraining the company’s ability to fund new projects or absorb revenue setbacks over the medium term.

Negative free cash flow

Significant negative free cash flow in 2025 indicates capex or working capital outflows exceeded operating cash generation. If sustained, negative FCF forces external financing, increases leverage, or delays maintenance and growth investments, pressuring long‑term availability and resilience.

Weaker net margins & volatile revenue

Declining net margins and inconsistent revenue growth signal weakening profitability and more volatile top‑line. This reduces internal funding capacity, complicates multi‑period planning, and may pressure tariffs or require sustained cost control to maintain returns and liquidity.

NHPC Limited Business Overview & Revenue Model

Company Description

NHPC Limited, together with its subsidiaries, generates and sells electricity in India. The company generates electricity through hydro, wind, and solar power stations. It owns and operates 24 power stations with an installed capacity of 7071.2 megawatts. The company also offers consultancy services in the areas of river basin studies; detailed survey and investigations; cost engineering; environmental impact assessment and environmental management plans; project reports, clearances, and investment decision; tendering for civil / mechanical /electrical works; contract management and assistance in procurement; equipment planning and management; construction planning and management; quality control and assurance; operation and maintenance; renovation, modernization, and uprating of hydropower stations; hydro power, tidal, wind, and geothermal development; lenders independent engineers/ review consultant/ techno commercial advisory services; projects execution; training / human resources development; and information technology and communication. In addition, it provides project management and construction contract services, as well as trades in power. The company sells electricity to bulk customers that include electricity utilities owned by state governments/private distribution companies. The company was formerly known as National Hydroelectric Power Corporation Ltd. NHPC Limited was incorporated in 1975 and is based in Faridabad, India.

How the Company Makes Money

NHPC Limited generates revenue primarily through the sale of electricity produced by its hydroelectric power projects. The company operates numerous hydropower stations across India, which contribute significantly to its revenue stream. Additionally, NHPC earns income from the sale of renewable energy certificates and carbon credits, as well as from its ventures in solar and wind energy projects. The company often enters into long-term power purchase agreements (PPAs) with state electricity boards and other utilities, ensuring a stable and predictable revenue flow. Key factors contributing to NHPC's earnings include government support for renewable energy initiatives, strategic location of its hydroelectric projects, and its expertise in project management and execution in the power sector.

NHPC Limited Financial Statement Overview

Summary

NHPC Limited demonstrates strong gross profitability and operational efficiency, but faces challenges with declining net margins and inconsistent revenue growth. The balance sheet remains robust with significant equity, though rising debt levels could increase financial risk. Cash flow management is a concern, with negative free cash flow raising liquidity questions. Overall, the company is well-positioned but must address its leverage and cash flow issues to enhance financial stability.

Income Statement

The company exhibits a solid gross profit margin consistently above 90%, indicating effective cost management. However, net profit margin has been declining, dropping from 36.3% in 2023 to 29.0% in 2025. Revenue growth has been inconsistent, with a 7.2% increase in 2024, followed by a 2.6% decrease in 2025. The EBIT margin has increased over the years, showcasing improved operational efficiency, but the EBITDA margin has shown some volatility.

Balance Sheet

NHPC Limited maintains a strong equity base, with an equity ratio of 38.6% in 2025. The debt-to-equity ratio has increased, reaching 1.05 in 2025, indicating rising leverage which could pose risks. Return on equity has remained stable around 7.6%, reflecting steady profitability relative to equity.

Cash Flow

The company faces challenges in free cash flow management, as evidenced by the significant negative free cash flow in 2025. The operating cash flow to net income ratio is strong, indicating healthy cash generation. However, the free cash flow to net income ratio has turned negative, highlighting potential liquidity concerns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	108.99B	103.80B	84.61B	93.53B	82.79B	84.34B
Gross Profit	93.57B	90.79B	88.14B	55.32B	43.79B	82.60B
EBITDA	66.36B	59.29B	62.51B	68.62B	60.89B	61.96B
Net Income	30.59B	30.07B	35.96B	39.03B	35.24B	32.72B
Balance Sheet
Total Assets	0.00	1.03T	932.95B	890.86B	772.85B	731.57B
Cash, Cash Equivalents and Short-Term Investments	24.88B	27.51B	36.35B	37.87B	17.28B	21.44B
Total Debt	0.00	415.74B	345.78B	315.57B	260.96B	253.82B
Total Liabilities	-451.63B	575.15B	494.03B	443.73B	396.89B	372.38B
Stockholders Equity	451.63B	396.68B	387.02B	368.99B	349.21B	330.90B
Cash Flow
Free Cash Flow	0.00	-38.25B	-596.40M	-2.68B	14.57B	30.91B
Operating Cash Flow	0.00	50.26B	69.38B	46.92B	64.72B	50.73B
Investing Cash Flow	0.00	-75.50B	-59.68B	-42.46B	-49.66B	-15.30B
Financing Cash Flow	0.00	19.04B	-5.81B	-7.96B	-6.38B	-31.38B

NHPC Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NHPC, the sentiment is Negative. The current price of 83.62 is above the 20-day moving average (MA) of 76.17, above the 50-day MA of 77.18, and above the 200-day MA of 80.88, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 36.58 is Neutral, neither overbought nor oversold. The STOCH value of 51.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NHPC.

NHPC Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TORNTPOWER	75 Outperform	₹784.48B	24.84	―	1.48%	-1.26%	27.83%
GVT&D	72 Outperform	₹965.88B	90.44	―	0.10%	33.42%	132.99%
POWERGRID	72 Outperform	₹2.76T	17.78	―	3.37%	0.80%	-3.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NHPC	65 Neutral	₹734.59B	23.25	―	2.44%	15.72%	6.45%
TATAPOWER	65 Neutral	₹1.18T	30.99	―	0.59%	4.06%	8.22%
SJVN	55 Neutral	₹276.15B	43.66	―	1.94%	6.92%	-44.22%

NHPC Limited Corporate Events

NHPC Raises ₹2,000 Crore via 7.29% Unsecured AH Series Bonds

NHPC Limited has raised ₹2,000 crore through the private placement of listed, unsecured, non-convertible, non-cumulative, redeemable, taxable AH Series 2041 bonds bearing a coupon of 7.29% per annum. The 15-year bonds, each with a face value of ₹1 lakh, are proposed to be listed on the wholesale debt market segments of the BSE and NSE, reinforcing NHPC’s use of bond markets to secure long-term funding for its power infrastructure needs and signaling continued capital investment that is relevant for creditors and other stakeholders.

The issuance structure as unsecured debentures without special rights or asset charges indicates confidence in NHPC’s standalone credit profile, while the sizeable issue underscores sustained investor appetite for its debt securities. By locking in funding at a fixed coupon over a long tenor, NHPC gains greater visibility on borrowing costs, which can support planning for future power projects and may influence its leverage profile and financing strategy within India’s regulated power sector.

NHPC Updates Investors on Kishanganga Arbitration Award in Favour of HCC

NHPC Limited has disclosed an update on a material arbitration case related to the Kishanganga Hydroelectric Project, where an arbitral tribunal has pronounced an award in favour of contractor Hindustan Construction Company. The dispute concerns claims for release of performance and retention bank guarantees, various tax and legislation-related cost changes, price adjustments and compensation for additional work beyond the original contract scope.

The tribunal has awarded HCC about Rs 227.82 crore plus EUR 26,66,029, along with pre-reference and pendente lite interest at 10.40% per annum, arbitration costs in rupees and U.S. dollars, and future interest at 12.40% per annum, while NHPC’s counter-claims of Rs 738.67 crore remain to be argued. NHPC said the arbitral award dated 21 February 2026 is under examination, signalling potential future legal steps and financial implications for the company as it balances the awarded liabilities against its substantial pending counter-claims.

NHPC Announces Senior Management Changes Effective 2026

NHPC Limited has announced changes in its senior management, informing the exchanges of the scheduled superannuation of Executive Director Rajat Gupta effective end of day January 31, 2026, and the promotion-based appointment of Anish Gouraha as Executive Director from February 1, 2026. Gouraha, who holds a B.E. in Electrical engineering and an MBA in HR and has 28 years of service with NHPC since joining in 1997, will step into a key leadership role one level below the Board, indicating a continuity-focused internal succession plan aimed at maintaining operational stability and leveraging long-term institutional experience in the company’s management structure.

NHPC Board Clears Proposal for Rs 2,000 Crore AH-Series Bond Issue via Private Placement

NHPC Limited’s board has approved the proposal to proceed with the General Information Document and Key Information Document for issuing unsecured, redeemable, taxable, non-convertible, non-cumulative AH-series bonds of up to Rs 2,000 crore through private placement. The bond issuance forms part of NHPC’s borrowing plan for the financial year 2025-26, indicating the company’s continued reliance on debt markets to fund its operational and expansion needs, which may influence its capital structure and provide additional resources for power sector investments.

NHPC Commissions Second 250 MW Unit at 2,000 MW Subansiri Lower Hydro Project

NHPC Limited has declared the commercial operation of Unit 2, a 250 MW unit, of its 2,000 MW Subansiri Lower Hydroelectric Project located in Assam and Arunachal Pradesh, following the successful completion of trial runs. This milestone incrementally adds to NHPC’s operational capacity at one of India’s key hydro projects, enhancing supply potential in the northeastern region, while the company indicated that the commissioning of the remaining units of the project will be announced in due course, signaling further staged capacity addition ahead.

NHPC Limited Transfers Equity Shares to IEPF Authority

NHPC Limited announced the publication of a notice to its equity shareholders regarding the transfer of equity shares to the Investor Education and Protection Fund (IEPF) Authority. This move, in compliance with SEBI regulations, was communicated through newspaper advertisements in Business Standard editions. The transfer of shares to the IEPF Authority is a regulatory requirement that ensures unclaimed dividends and shares are managed appropriately, reflecting NHPC’s adherence to statutory obligations and potentially impacting shareholder equity management.